Oriole Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,400 machine hours. Prices and costs for each product are as follows:

		Widget		Gadget
Selling price per unit		$264		$344
Variable costs per unit
Direct materials		37		49
Other direct costs		17		26
Variable Manufacturing overhead costs*		44		58

* Variable manufacturing overhead costs are applied at a rate of $54 per machine hour. Uli Industries, a potential client, has offered $264 per unit to Oriole for 264 special units. These 264 units would incur the following production costs and time:

Direct materials		$9,622
Other direct costs		$4,400
Machine hours		239

A) Assume that Oriole has enough excess capacity to produce the special order. Calculate what the total contribution would be if the special order from Uli were accepted.

Total contribution margin

$

B) Assume that Oriole is currently operating at full capacity. Calculate the contribution margin per unit and per machine hour. (Round machine hours to 2 decimal places, e.g. 12.25 and final answers to 0 decimal places, e.g. 125.)

		Widget		Gadget		New Order
CM per unit		$ enter a dollar amount		$enter a dollar amount		$enter a dollar amount
CM per machine hour		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

Determine whether Oriole should produce the units for the special order instead of widget or gadget units.

Oriole select an option (should or. should not ) produce the units for the special order instead of widget or gadget units.

C)Assume that Oriole is actually operating at 95% of full capacity. Calculate what the opportunity cost would be if Ulis special order were accepted.

Opportunity cost

$ .

D)Assume that Oriole is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $36,400 to produce Ulis special order. If the special order is accepted, calculate its effect on Orioles profit.

Net profit from doing the special order

$ .